Import long steel prices continued lower this week amid new reports that import deliveries, mostly from Asian nations, were expected to continue to rise at US Gulf Coast ports, challenging recent market share gained by domestic steel suppliers, market insiders told SteelOrbis.
“Import inventories in Houston (Texas) seem really high at the moment due to a glut of new arrivals,” reported one US Gulf Coast long steel insider to SteelOrbis. “While markets remained pretty quiet ahead of the US July 4 holiday, import long steel prices are a bit lower overall.”
Recently, Section 232 steel import tariffs of 50 percent, high energy pricing as a result of the US-Iran war, and extended global steel production and delivery lead times, have reduced the competitiveness of global finished steel imports, giving a recent edge to domestic US steel producers. Seasonal demand declines in Asia and currency issues in Turkish and other global steel markets combined with lower global scrap prices has increased the affordability of imports to more workable levels, insiders said.
“The markets are quiet pre (July 4) holiday, and rebar demand is considerably down this week,’ said another US Gulf Coast steel importer. “The market sentiment is starting to turn slightly bearish, with prices going soft sideways due to dirty cheap import (rebar) from Korea.” He continued, “It looks like about 400,000 tons of material has entered or is about to enter the US by the end of June. The landed US cost of rebar is so low right now because they have obviously dumped rebar into the US.”
Another import insider had a slightly different take on recent reports of increased Korean imports.
“Korean shipments have been very late recently by not arriving on their promised dates,” he said. “We saw some increased imports during May and June, but we’re likely to see even more imports come in this month and into August. Then, we’ll likely see imports taper off toward the end of the year as US demand dries up a bit going into the 4th quarter.”
At the US Gulf Coast, import rebar on a loaded truck basis is reported at on average another $10/nt lower at $45.00-46.00/cwt., ($900-920/nt or $992-1,014/mt), off from $45.50-46.50/cwt., ($910-930/nt or $1,003-1,025/mt), one week prior. Spot pricing for US East Coast import rebar also was assessed an additional $0.50/cwt., less at on average $45.50-46.50/cwt., ($910-930/nt or $1,003-1,025/mt), off from $46.00-47.00/cwt., ($920-940/nt or $1,014-1,035/mt) seven days earlier.
In the import wire rod market, delivered pricing continued lower on reports of additional import supplies made available on a DDP loaded truck basis from “hungry Asian mills” at $47.50-49.50/nt ($950-990/nt or $1,047-1,091/mt), off from $48.00-50.00/cwt., ($950-980/nt or $1,047-1,080/mt) one week ago. Traders said a second week of softness in wire rod markets could continue near term as additional supplies begin to be made available from various “wild card” suppliers from Indonesia and other Asian nations such as Korea and Vietnam, regardless of ongoing anti dumping cases.